JPMorgan Strategist Claims Fed Has Surrendered on 2% Inflation Target

JPMorgan's Head of U.S. Investment Strategy, Jacob Manoukian, has made a surprising claim about the Federal Reserve's stance on inflation. Speaking to CNBC in September 2026, Manoukian stated that the Fed has effectively accepted inflation above its targeted 2% level rather than risk economic repercussions from forcing it back down.

This means that investors may need to reevaluate their fixed-income positions and consider assets whose earnings power scales with the price level. Gold is seen as a prime example of such an asset, particularly through companies like Newmont (NYSE:NEM), the world's largest gold producer with a market cap of around $137.4 billion.

The data supports Manoukian's claim, with core PCE printing at 130.66 in July 2026, its highest level for the trailing year. Headline CPI is also near its cycle high, sitting in the 90.9th percentile of past readings.